Facilitating a Leveraged Buyout

Based in Melbourne, Victoria, ZircoDATA provides off-site secured document storage and related document management services across Australia. ZircoDATA and its predecessor companies have been operating in Australia for 25 years with a platform that now spans 19 facilities that serves over 3,000 customers nationwide.

We were first introduced to ZircoDATA in early 2020 as the Company was considering options to refinance existing bank debt, support a dividend recap, and secure additional funding capacity to support its tuck-in acquisition strategy. However, in late April 2020, ZircoDATA put the capital raise process on hold due to the uncertain economic environment arising from the COVID-19 pandemic. Nevertheless, we maintained an active calling relationship with the Company as well as the sponsor, Housatonic Partners, to reinforce our appetite and interest in supporting the business when the time was right coupled with our ability to move quickly to do so.  

The Company re-evaluated the capital raising in early 2021 and chose to partner with us as the sole lender on a direct basis because of the relationship we had developed, responsiveness, and knowledge of the sector. Additionally, we were able to underwrite and hold the entire investment, provide multiple financing structures, as well as offer a flexible terms package that was tailored to support the Company’s growth objectives.

In May 2021, we closed on a A$75.0 million senior secured term loan, committed A$15.0 million to a revolving credit facility and committed A$10.0 million to a delayed draw term loan facility.

We are pleased to be partnering with ZircoDATA and its management team, as well as Housatonic Partners, and look forward to supporting the business as it continues to grow and consolidate the market.